What are Three Major Developments in Crypto Space in 2020?
The year 2020 is a very important year for cryptocurrency due to three main things. First, institutional investors are entering the crypto space. Second, several central banks are planning to roll their digital currencies. Third, global regulators are proposing comprehensive charts of regulatory measures for digital assets.
According to several reports by blockchain data firms, big players have started taking interest in Bitcoin. After Coronavirus, the central banks started printing more and more cash, which has caused enough inflation in traditional markets. Like gold, bitcoin is also known as a good hedge in tough economic times. So, it is taking place the seat of gold gradually. Now, investors are buying the top digital asset for the long term rather than a short time.
Many big institutions have also recognized it as a potential financial asset. Even JPMorgan showed some interest in cryptocurrency and hired a new global head for digital assets. Giant payments companies, such as Mastercard and Visa, had also recognized the potential of digital assets. Goldman Sach had also hired exec for crypto assets recently.
Banks’ Plans for CBDC
According to a report published by the Bank for International Settlements, nearly 35 central banks across the world have published work over digital currency and nine banks have introduced pilot projects for central bank digital currency (CBDC). Chinese’s central bank is ahead of all which has completed all work over digital yuan. But the final date of launch has not yet been announced by the People Bank of China.
Regulators are Active
Over recent years, there has been a regulatory uncertainty around digital assets. Since the start of 2020, regulators have taken crypto regulations seriously. For instance, the US Office of the Comptroller of the Currency has recently allowed banks to offer crypto services such as custody facilities.
The European Commission (EC) has also proposed a comprehensive regulatory charter. EC said it must be ready to the launch digital euro as the world is shifting to a digital road. The US regulators are targeting unregulated crypto exchanges as BitMEX is the latest victim of it.